Australia: Workers compensation news

On or about Christmas day 2017, the sharp edge of the New South
Wales Government changes to the Workers Compensation Scheme
announced in June 2012, will take effect.

The changes to the scheme announced in June 2012, effectively
provide that for most workers, the scheme will only provide weekly
compensation payments for a maximum period of 260 weeks. There is
an exemption to this rule in respect of workers who have a whole
person impairment of more than 20%.

For workers off work at the time of the announcement of the
changes, the commencement of the 260 week period was 1 January
2013, and accordingly, the expiration of that period will fall due
at or about Christmas day 2017 for many thousands of injured
workers in New South Wales. For workers injured after January 2013,
the 260 week period would commence on the day they became
incapacitated for work.

Statistics available through the workers compensation regulator
indicate that there are approximately 5,000 to 6,000 workers in the
category who will be directly effected by way of termination of
payments in December 2017. Curiously, the majority of that number
of workers do not appear to have made any enquiry about their
position or have sought legal advice.

What is required to be done, if this has not already been done
in the past, is for such injured workers to obtain an assessment of
whole person impairment via a Work Cover Approved Specialist.
Should the assessment of whole person impairment following upon
such examination, be found to be of a level of more than 20%, then
the workers entitlements to weekly payments will continue after
December 2017. Should the level of whole person impairment be less
than 20%, then the workers entitlement to weekly payments will
cease.

It is also possible that workers in this category affected by
the June 2012 changes, may not have received all of their possible
entitlements under the Workers Compensation Act, in particular,
with regard to possible claims for lump sum compensation for
permanent impairment. The existence or otherwise of such
entitlement is again dependent upon the worker undergoing a
medico-legal examination by an Approved Medical Specialist.

One of the other significant changes to the workers compensation
system brought about in 2012, is the provision limiting payment of
medical and related treatment to a set period after receipt of
injury at work. Historically, the Workers Compensation Act of New
South Wales contained no provision with regard to the time during
which a worker could receive reimbursement for medical and related
expenses incurred for a work injury.

That longstanding arrangement was changed in the 2012 amendments
to the Act to limit the ability of a worker to recover medical and
related expenses to a period of 2 years after the date of injury or
2 years after the last payment of weekly compensation was paid if
weekly benefits were in fact paid.

Once again, the crucial issue of the level of a workers whole
person impairment becomes relevant as if the injured worker has a
level of whole person impairment in excess of 10%, then the 2 year
period becomes 5 years for the limitation to take affect, and if
the workers level of whole person impairment is in excess of 20%,
then the coverage for medical and related expenses becomes
unrestricted.

According for workers who may not have received an assessment of
whole person impairment in the past, it is vitally important that
such assessment be carried out as it will determine not only an
entitlement to a lump sum for permanent impairment, but also the
length of time during which weekly payments and medical expenses
can be preserved.

Carroll & O'Dea Lawyers has a panel of experts in
personal injury law who can assist in sorting out the complex legal
situation that surrounds the changes to the Workers Compensation
System announced in June 2012.

Workers need not be concerned about any possible impact of legal
fees as generally speaking, the workers compensation system
operates under a different regime of costs to litigation generally
and in most instances, a worker has no legal obligation to pay
legal fees.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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